How much do I have to withdraw each year?
This can be a little tricky but luckily there are some helpful tools.
Calculate your Minimum Distribution in 3 steps.
Here are some steps to calculating your RMD:
1. Ascertain Withdrawal Rate
The I.R.S. supplies a Uniform Lifetime Table that offers life expectancy factors based on age. This factor is essential for determining the necessary amount to withdraw annually from your I.R.A.
2. Compute Your Mandatory Minimum Distribution
To calculate your Required Minimum Distribution, divide your I.R.A.’s previous year-end balance, as of December 31, by the life expectancy rate from the first step. This provides the yearly minimum withdrawal amount for your account.
3. Perform the Calculation Annually
You need to withdraw the Required Minimum Distribution (R.M.D.) every year. Therefore, do this calculation each year to find the R.M.D. for the upcoming year.